Exploring the Truck Driver Shortage Phenomenon with Evidence and Insights from the Norwegian Freight Transport Industry

Abstract

Trucking is one of the most critical links in modern supply chains, as most shipments rely on trucks to reach their final destination. Ironically, a shortage of professional truck drivers is reported to be one of the most serious and critical challenges facing transportation industries all over the world. In recent years, the trucking profession has become less attractive while the demand for drivers has increased due to the rise of e-commerce and general population growth. Previous studies have found that multiple factors contribute to the reported driver shortage, including unfavorable working conditions leading to reduced driver retention, inability to attract new drivers due to lack of recruitment strategies, and unfair compensation compared to other available jobs. This study examines the truck driver shortage phenomenon in Norway's freight transport industry. We have in our study conducted interviews with highly representative individuals from various transportation companies and consulted with industry experts to also gain a more neutral perspective on the phenomenon. Key factors contributing to the shortage of qualified truck drivers unique to Norway include a poor truck driver school and training system, weakening of the Norwegian Krone, and negative stereotypes among younger generations towards the trucking profession. This thesis also investigates the relationship between driver shortage and logistics performance, providing evidence that truck drivers are key resources for transportation companies to reach competitive advantages. A shortage of qualified drivers impacts logistical performance by hindering transportation companies from developing logistics capabilities due to capacity constraints, shipping delays, and increased costs. We also found that it hinders the transition to more sustainable transport. The study concludes with recommendations for transportation companies on how to effectively recruit and retain truck drivers going forward. We recommend a collaborative approach from industry leaders, policymakers, and educational institutions to create a more attractive career path for upcoming truck drivers by lowering the barriers to enter the trucking profession. Additionally, we suggest that transportation companies develop multiple recruitment sources. Lastly, we propose implementing retention strategies to ensure the transportation industry keeps qualified truck drivers for as long as possible. This is important not only for transportation companies but also for society and the economy as a whole.